Global Acquisitions Network et al v. Bank of America Corporation et al
Filing
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ORDER GRANTING DEFENDANT JON LEARYS MOTION TO SET ASIDE DEFAULT 104 by Judge Dean D. Pregerson. (lc). Modified on 12/17/2013. (lc).
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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GLOBAL ACQUISITIONS NETWORK,
a Wyoming corporation; SHAWN
CORNEILLE, an individual,
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Plaintiffs,
v.
BANK OF AMERICA CORPORATION,
a Delaware corporation;
ORIANA CAPITAL PARTNERS,LLC,
a Connecticut limited
liability company; et al.
Defendants.
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Case No. CV 12-08758 DDP (CWx)
ORDER GRANTING DEFENDANT JON
LEARY’S MOTION TO SET ASIDE
DEFAULT
[Dkt. No. 104]
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Presently before the Court is Defendant Jon Leary’s motion to
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set aside entry of default (the “Motion”). For the following
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reasons, the Motion is GRANTED.
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I. Background
Plaintiffs Global Acquisitions Network and Shawn Corneille
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(“Plaintiffs”) filed this action against multiple defendants,
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alleging breach of contract and related causes of action. (FAC,
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Docket No. 48.) Following the filing of the First Amended Complaint
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in March 2013, Defendant Bank of America filed a motion to dismiss
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the action against them, which the Court granted on June 7, 2013.
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(Docket No. 60.) Defendant Jon Leary then filed a motion to dismiss
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based on lack of personal jurisdiction, which the Court denied on
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July 9, 2013. (Docket No. 68.) Plaintiffs then proceeded to seek
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entry of default against several defendants in a piecemeal fashion.
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Default was entered against Leary on August 6, 2013. (Docket No.
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79.)
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Leary, proceeding pro se, now seeks to set aside the entry of
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default. (Docket No. 104.) Leary explains that he attempted to file
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an answer in early August. (Id.) Leary also alleges that he has
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bona fide defenses to the allegations in the FAC and that he had
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little to no involvement in the matters pled therein. (Id.) Leary
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further contends that Plaintiffs have not been prejudiced by the
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delay. (Id.)
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II. Legal Standard
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Once default has been entered, the defaulting party has the
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burden of showing that default should be set aside. Cassidy v.
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Tenorio, 856 F.2d 1412, 1415 (9th Cir. 1988). The defaulting party
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must show that good cause exists for setting aside the default.
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Fed. R. Civ. Prov. 55(c). In determining whether good cause exists,
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the court may consider the following factors: (1) whether the
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defaulting party has a meritorious defense; (2) prejudice to the
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plaintiff if default is set aside; and (3) the defaulting party’s
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culpability in allowing default to occur. Mendoza v. Wight Vineyard
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Mgmt., 783 F.2d 941, 946 (9th Cir. 1986).
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III. Discussion
Leary alleges that he had “little to no involvement in the
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matters as hand.” (Motion, Docket No. 104, p. 2.) While the merits
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of this assertion remain to be seen, the Court is persuaded that
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Leary’s argument may have merit. Therefore, a resolution of the
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case on the merits is preferable to allowing default to stand.
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Further, the prejudice that Plaintiffs will suffer is minimal.
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Plaintiffs are still in the process of seeking entry of default
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and/or default judgment against various other Defendants in this
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case. With substantial other activity occurring in this case,
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Plaintiffs will not suffer prejudice, other than actually having to
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prove their claims against Leary rather than collect by way of
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default judgment.
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Leary also offers an excuse for his default because he alleges
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that he tried to file an answer to Plaintiffs’ FAC in August but
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was unsuccessful. Because Leary is self-represented and appears to
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reside in Connecticut, filing documents in the Central District of
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California and checking whether they have been properly filed may
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be challenging for Leary. As a result, the Court does not believe
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that Leary is highly culpable in allowing default to occur.
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IV. Conclusion
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For the foregoing reasons, the Court GRANTS the Motion. The
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entry of default against Leary is set aside.
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IT IS SO ORDERED.
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Dated:December 17, 2013
DEAN D. PREGERSON
United States District Judge
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